How to Apply for an SSS Housing Loan: The Ultimate Guide

Acquiring a new home involves a large sum of money. If you are ready to build your dream home, you do not have to worry about paying the whole amount upfront as there are available loans that you can apply for. Social Security System (SSS) offers a housing loan for you to be able to start building the house you have always wanted. It is called the Direct Housing Loan Facility for Overseas Filipino Workers intended to support the government’s Pabahay sa Bagong Siglo Program that aims to provide socialized and low-cost housing to workers abroad. If you are working inside the country, you are limited to salary loans and home improvement loans through SSS. For people who are in the country and looking for a housing loan, you can go to Pag-IBIG or any bank that proposes the said loan.

Here is a checklist of the requirements and qualifications that SSS provided for potential loaners:

The Overseas Filipino Workers (OFWs)

These are the accepted conditions in order to be considered as an OFW:

Currently deployed with a contract processed through the POEA or authenticated by the Embassy abroad.
Those with employment contracts which are awaiting renewal/deployment; however, release of loan shall be made upon renewal/deployment.
Citizens or immigrants of foreign countries but are interested in buying housing units for their families who are still in the country.
Long-term resident overseas Filipinos who wish to avail of housing packages either for themselves when they retire or when they visit the Philippines and/or for their extended families.

The terms of the loan and the allowable amount

SSS President Emilio de Quiros Jr. stated that members can now borrow up to P2,000,000. The new set of interest rates is as follows:

9% per anum for loans up to 1 million
10% per anum for loans P1,000,001 to 1.5 million
11% per anum for loans P1,500,001 to P2 million

The interest rates depends upon the appraisal and the loan is payable in multiples of five (5) up to a maximum of 15 years for OFWs but for borrowers aged 60 at the time of application will have a maximum loan term of five (5) years. A maximum of three (3) qualified SSS members may be tacked-in for a single loan up to the combined maximum individual availment for the loanable amount secured by the same collateral, provided they are related within the 1st civil degree of consanguinity or affinity.

Collaterals

The loan shall be secured by a first Real Estate Mortgage on the house and lot to be financed. The REM shall be annotated on the member-buyer’s TCT and shall be registered with the appropriate Registry of Deeds. It shall also be covered by an HGC guaranty.

Required documents for the loan

These documents must be submitted upon application:

Mortgagor’s Application for Housing Loan with 1” x 1” ID pictures of Principal Applicant and Spouse (Original).
Certificate of Loan Eligibility (Original) – (P100 Service Fee).
Certification from POEA, DOLE, OWWA, SSS Foreign Representative Office or Philippine Embassy/Consular Office (Original).
Latest Contract of Employment (Photocopy notarized).
Contract to Sell with statement of latest balance (Original).
Owner’s copy of the Original/Transfer Certificate of Title (Certified True Copy).
Latest Property Tax Declaration and Realty Tax receipt (Photocopy).
Lot Plan with vicinity map duly signed and sealed by Registered Surveyor or Geodetic Engineer (Blue Print).
Building plans/specifications/picture of the house (Blue Print).
Confirmation of Completion and Appraisal from Home Guaranty Corporation located at Jade Bldg., 335 Sen. Gil Puyat Avenue, Makati City with tel. no. 895-90-11 (Original).
A set of twelve (12) postdated checks covering twelve (12) monthly installments and shall be repeated every 12 months thereafter until the loan is fully paid.
Certificate of Acceptance and Occupancy duly signed by the borrower if house is 100% complete at the time of loan filing (original).
Special Power of Attorney (if filing is thru a representative) (original).
Certified True Copy of the Original Transfer Certificate Title issued by the Registry of Deeds.

Note:

Present original and submit one (1) photocopy for authentication purposes.
Applicant must be up-to-date in all existing loan accounts with SSS subject to verification by SSS-Real Estate Department.
SSS reserves the right to require additional documents if deemed necessary.
Application Fee – ½ of 1% of loan amount or P500 whichever is higher, for both socialized and low-cost housing.
Inspection Fee – P500 for both within and outside Metro Manila.

Where to file the application

Look for the nearest SSS office or foreign representative office or the Real Estate Department, 5/F, SSS Bldg., East Avenue, Quezon City).

Purpose of the Loan

To construct a new house on a lot owned by the applicant that is free from lien or encumbrance;
To purchase an existing residential unit, which may be a house and lot, a condominium, or a townhouse; and

Borrower’s Eligibility

A certified overseas Filipino worker
An active SSS member and has paid at least 12 months continuous contributions or at least 24 months total contributions
Not more than 65 years old
Has not been previously granted a housing loan by the SSS, refund of contributions, retirement or total permanent disability benefit and – Is up-to-date in the payment of all SSS contributions and loan amortizations

Repayment of loan amortization

OFWs can issue a minimum of twelve (12) post-dated checks which shall be repeated every year subsequently until said loan is fully settled. Subject arrangement is incorporated in the mortgage contract entered into by the SSS and the borrower.

As mentioned above, non-OFWs are allowed to apply for home loans but only for the purpose of house repairs and improvements. It is a lending program available either directly from SSS or through its accredited participating financial institutions (PFIs).

Here is a checklist for the requirements and qualifications of the Housing Loan for Repairs and/or Improvement:

The terms of the loan and the allowable amount

The maximum loanable amount shall be the lowest of the following but shall not exceed P1,000,000:

Amount applied for;
Amount justified by the paying capacity;
Actual need as determined by the SSS; and
Ninety per cent of the appraised value of the property to be mortgaged.

The loan has a 9% interest rate per annum, subject to review every five (5) years and is payable up to 20 years. However, it should not exceed the economic life of the house after repairs/improvements have been made as determined by the SSS or PFIs, nor the difference between the age of the applicant and 70.

Collaterals

The loan shall be secured by a first mortgage on the lot and house proposed to be repaired and/or improved. For loans through the PFIs, a joint first mortgage for the SSS and the PFI is required. The lot must have a clean title and should be registered under the Torrens System in the name of the borrower and/or his spouse. A property that is mortgaged to the SSS or the National Home Mortgage Finance Corporation (NHMFC) is acceptable if the repair or improvement loan is filed directly at SSS.

Required documents for the loan

The following documents must be presented upon application:

Mortgagor’s Application for housing loan, Credit Information Sheet and 1” x 1” ID pictures of Principal Applicant and Spouse;
For self-employed: last 3 years ITRs with corresponding Form W-2, Confirmation Receipts and Financing Statement, Form RS-1, SSS Form E-1 and Business License;
For voluntary member or self employed: Premium Receipts (Payment Return Form RS-5);
For overseas worker: Certification and Contract of Employment and Form RS-5;
If has availed of SSS housing loan, Housing Loan Certification to be secured from the Real Estate Loan Accounting Department, 9th Floor, SSS main office (RELAD);
Owner’s copy of the Original/Transfer Certificate of Title*;
Latest Property Tax Declaration and Realty Tax receipt;
Lot plan with vicinity map duly signed and sealed by registered Surveyor or Geodetic Engineer*;
Itemized scope of work with corresponding sketch plan or old building plans for the proposed repair;
Building plans and working drawings of the proposed improvement duly signed and sealed by a Civil Engineer or Architect;
Building and construction specifications duly signed and sealed by a Civil Engineer or Architect;
Pictures of existing house and all portions to be repaired and/or improved;
If existing housing loan with the SSS is a Joint Application, written conformity of the other applicant;
Affidavit of undertaking to continue paying monthly SSS premium contributions for the duration of loan (Voluntary and Self-employed member only);
Certified True Copy of the Original TCT issued by the Registry of Deeds.

Where to file the application

Loaners can file their applications at the Real Estate Department, 5/F, SSS Bldg., East Avenue, Quezon City.

Purpose of the Loan

The loan may be used to finance the following:

Major repairs, particularly for dilapidated and structurally unsafe housing units;
Improvements which shall apply to:
Extension or expansion and enhancement of economic and aesthetic value of an existing housing unit. Said improvements shall be permanently attached to the house.
Completion of an occupied bare house
Construction of concrete fence and steel gate
Installation of deep well and motor pump

Borrower’s Eligibility

Active SSS member and has paid at least 24 months continuous contributions prior to application or at least 36 months total contributions.
Not more than 65 years old.
Has not been previously granted a repair and improvement loan by the SSS or NHMFC (National Homes Mortgage and Financing Corporation).
If with an existing member loan, must be up-to-date in amortization payments in all member loans including housing loan with the SSS at the time of filing of application for repair and/or improvement. If existing housing loan is restructured, a copy of the Supplemental Mortgage Contract shall be submitted.

Repayment of loan

The mode of repayment for loans filed directly at the SSS will follow the Mandatory Payroll Deduction System. For self-employed/voluntary members, a minimum of twelve (12) post-dated checks shall be issued and repeated every year thereafter until the said loan is fully paid.

If you are planning to buy your own home, you can browse our list of condominiums and houses for sale.

References:

https://www.jobstreet.com.ph/career-resources/rights-duties-benefits
http://www.alagad.com.ph/social-protection/22-sss-how-tos/136-housing-loan.html and
Lian Seno, Processor, SSS

Written by Ria Isobel Don

Ria works as the Listings Lead and contributor writer for Hoppler. She loves metaphors and alternate realities, lives for visual arts, music, and beer.